**Problem Statement:**Bellue Incorporated manufactures a single product. Variable costing net operating income was $114,600 last year and its inventory decreased by 3,000 units. Fixed manufacturing overhead cost was $3 per unit for both units in beginning and in ending inventory. What was the absorption costing net operating income last year?**Multiple Choice Options:**- $114,600- $117,600- $9,000- $105,600**Explanation:**- The problem provides information about the variable costing net operating income and requires a calculation to find the absorption costing net operating income.- The change in inventory and fixed manufacturing overhead cost per unit are key details for solving the question.- Understanding the difference between variable costing and absorption costing is crucial for selecting the correct answer.

Absorption costing: It implies to a costing method that considers or takes into account all the…

Answered: Bellue Incorporated manufactures a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

A company's operating income was $75,000 using variable costing for a given period. Beginning and ending inventories for that period were 46,000 units and 51,000 units, respectively. Ignoring income taxes, if the fixed factory overhead application rate was $8.10 per unit, what would operating income have been using full costing? Multiple Choice $32,250. $115,500. Cannot be determined from the information given. $150,000. $102,000.
A company produced and sold 3,400 units of its only product this year. The sales price is $162 per unit. Fixed costs include overhead of $85,000 per year, and selling and administrative expenses of $68,000 per year. Variable costs per unit follow. Direct materials Direct labor Variable overhead Variable selling and administrative expenses Use variable costing to compute contribution margin. Variable expenses Contribution Margin (Variable Costing) $ 28 per unit $ 30 per unit $5 per unit 34 per unit
Required Information [The following information applies to the questions displayed below.] Ramort Company reports the following for its single product. Ramort produced and sold 20,000 units this year. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses Sales price Compute gross profit under absorption costing. RAMORT COMPANY Gross Profit (Absorption Costing) Sales Cost of goods sold Gross profit 1,200,000 $10 per unit $ 12 per unit $3 per unit $ 40,000 per year $ 2 per unit $ 65,200 per year $ 60 per unit
Margin of Safety Heads-Up Company sold 6,600 scooter helmets at $80.00 each this fiscal year. Unit variable costs were $50.00 (includes direct material, direct labor, variable manufacturing overhead, and variable selling expense). Total fixed costs equaled $82,500 (includes fixed manufacturing overhead and fixed selling and administrative expense). Operating income for the year was $115,500. Calculate the margin of safety in units. Select one: a. 3,850 b. 1,375 c. 6,600 d. 4,400 e. 2,750
Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $73 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 44,000 units and sold 39,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense a. What is the company's break-even point in unit sales? The company sold 29,000 units in the East region and 10,000 units in the West region. It determined that $180,000 of its fixed selling and administrative expense is traceable to the West region, $130,000 is traceable to the East region, and the remaining $90,000 is a common fixed expense. The company will continue to incur the total amount of its fixed…
Required information [The following information applies to the questions displayed below.] Cool Sky reports the following for its first year of operations. The company produced 44,000 units and sold 36,000 units at a price of $120 per unit. Direct materials Direct labor Variable overhead Fixed overhead Variable selling and administrative expenses Fixed selling and administrative expenses 2a. Assume the company uses variable costing. Determine its total product cost per unit. Variable costing Per unit product cost using: Total product cost per unit $ 48 per unit $ 18 per unit $6 per unit $ 440,000 per year $ 12 per unit 105,000 per year. $
Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $75 per unit in two geographic regions-the East and West regions. The following information pertains to the company's first year of operations in which it produced 46,000 units and sold 42,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 644,000 $ 388,000 The company sold 31,000 units in the East region and 11,000 units in the West region. It determined that $200,000 of its fixed selling and administrative expense is traceable to the West region, $150,000 is traceable to the East region, and the remaining $38,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it…
Peta, SA manufactures a single product that had the following cost structure this year: Variable Manufacturing Cost per unit: $15 Variable Selling and Administrative cost per unit: $8 Fixed Manufacturing Cost, Total: $261,000 Fixed Selling and Administrative Costs, Total: $132,000 They sold 13,000 units for $60 each during the year, and produced 21,000 units. What is the ending finished goods inventory under variable costing? Select one: A. $99,429 less than under absorption costing. B. $50,286 less than under absorption costing. C. $114,286 less than under absorption costing. D. $120,000 less than under absorption costing. E. $64,000 less than under absorption costing.
Please do not give solution in image format
Required information [The following information applies to the questions displayed below.] Diego Company manufactures one product that is sold for $71 per unit in two geographic regions-East and West. The following information pertains to the company's first year of operations in which it produced 54,000 units and sold 49,000 units. Variable costs per unit: Manufacturing: Direct materials Direct labor Variable manufacturing overhead Variable selling and administrative Fixed costs per year: Fixed manufacturing overhead Fixed selling and administrative expense $ 22 $ 12 $3 $5 The company sold 36,000 units in the East region and 13,000 units in the West region. It determined that $280,000 of its fixed selling and administrative expense is traceable to the West region, $230,000 is traceable to the East region, and the remaining $76,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce…
Assume the following information for the first year of operations for a company that sells only one product for a price of $48 per unit: 19 Variable cost per unit: Direct materials 25 Fixed costs per year: points Direct labor Fixed manufacturing overhead Fixed selling and administrative expenses $140,000 $200,000 $ 70,000 00:31:10 The company does not incur any variable manufacturing overhead costs or variable selling and administrative expenses. During its first y operations, the company produced 20,000 units and sold 18,000 units. The company wishes to compare a variable costing system that assigns $7.00 of direct labor cost to each unit produced with a super-varia system. Which of the following statements is true when comparing these two cost systems? Multiple Choice The variable costing net operating income will be $14,000 greater than the super-variable costing net operating Income. The variable costing net operating income will be $126,000 greater than the super-variable costing…
Get Answer

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS